Does an U.S. citizen who lives abroad and is a partner in a foreign entity taxed as partnership owe self-employment taxes?

Answer by Wray Rives: Yes you do owe self employment tax on foreign taxable self employment.  You may avoid some US taxation if there is a totalization agreement between the US and your resident country.  Self employment income that is exempt from US income tax due to the foreign earned income exclusion (What is earned Read more about Does an U.S. citizen who lives abroad and is a partner in a foreign entity taxed as partnership owe self-employment taxes?[…]

Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes?

My answer to Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes? Answer by Wray Rives: First make sure that in fact your Australian employer is subject to US tax reporting and US employment tax. Employment Status Number one are you in fact an Independent Contractor (Self-Employed) or Read more about Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes?[…]

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How much do self published eBook authors have to pay in taxes?

My answer to How much do self published eBook authors have to pay in taxes? Answer by Wray Rives: Since you say self published, I am going to assume you are receiving a percentage of the sales of your books and this is not a situation where you have sold the rights to your books Read more about How much do self published eBook authors have to pay in taxes?[…]

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Why do I pay higher taxes being self employed than when I was working for a corporation.

Answer by Wray Rives: Self-employed individuals might pay more tax for the same pay. The biggest tax difference between self employment and working as an employee is self-employment tax, income tax rates are the same for the same taxable income. FICA/Medicare tax When you are an employee you pay 7.65% FICA and Medicare tax and Read more about Why do I pay higher taxes being self employed than when I was working for a corporation.[…]

I want understand the tax for an LLC, which is owned by 2 partners. Is there any additional tax like a self-employee tax or income tax fo…

Answer by A Quora admin: If you and your partner own a US LLC, it is by default taxed as a US partnership.  Unless you have made an election to have your LLC taxed as a corporation, then the partnership needs to file a Form 1065, US partnership return and report each partner's share of Read more about I want understand the tax for an LLC, which is owned by 2 partners. Is there any additional tax like a self-employee tax or income tax fo…[…]

Tax Tips for the Self-employed

There are many benefits that come from being your own boss. If you work for yourself, as an independent contractor, or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed. Here are six key points the IRS would like you to know about self-employment and self- Read more about Tax Tips for the Self-employed[…]

Tax Advantages of S Corporation

The tax advantages of an S Corporation vs sole proprietorship or partnership is typically in the Self Employment tax. With a sole proprietorship or general partnership, all profits are in one bucket that flows out to the owner for taxation. The owner is taxed for income tax and self employment tax. Income tax depends on Read more about Tax Advantages of S Corporation[…]